6-K 1 gi6587.txt FORM 6-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of July, 2006 GRUPO IUSACELL, S.A. de C.V. ----------------------------------------------- (Translation of registrant's name into English) Montes Urales 460 Col. Lomas de Chapultepec, Deleg. Miguel Hidalgo 11000, Mexico D.F. ------------------------------------------------ (Address of principal executive office) Indicate by check mark whether the registrant files or will fill annual reports under cover of Form 20-F or Form 40-F: Form 20-F [X] Form 40-F [ ] Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g-3-2(b) under the Securities and Exchange Act of 1934. Yes [ ] No [X] ================================================================================ Documents Furnished By the Registrant 1. Press Release of the Registrant dated July 28, 2006 2 IUSACELL REPORTS SECOND QUARTER 2006 RESULTS - NET REVENUES INCREASE 27% - Mexico City, July 28, 2006 - Grupo Iusacell, S.A. de C.V. (BMV: CEL), reported its financial results corresponding to the second quarter of 2006. FINANCIAL INFORMATION Million pesos as of June 30, 2006

RECENT EVENTS As of July 2006, Iusacell's subscribers will now have international data service for easy access to mobile applications as a result of Iusacell's entering into a new agreement with Sprint of the USA. The Sprint data roaming agreement for coverage in North America is part of the international expansion of Iusacell in 2006. Iusacell is extending the network coverage for its clients through data roaming agreements. Under the terms of this agreement, our users will be able to have easy access to email, Internet and corporative applications in the United States using selected cellular telephones, intelligent devices and broadband mobile cards as if they were connected to the local network of Iusacell. 3 SECOND QUARTER RESULTS REVENUES Net revenues in the second quarter of 2006 increased by 27% to Ps $1,852 million, as compared to Ps $1,460 million during the same period 2005. The increase is primarily a result of growth in postpaid revenues as well as higher revenues from value added services mainly attributable to an increase in the subscriber base. Grupo Iusacell ended the second quarter of 2006 with 2.0 million subscribers. COST AND EXPENSES During the second quarter of 2006, total cost, increased by 46% to Ps $1,115 million as compared to Ps $763 million in the second quarter 2005. Operating expenses increased by 12% to Ps $437 million, as compared to Ps $389 million in the same period 2005. The increase in the total cost during the second quarter 2006 mainly reflects the increase in: (i) handset subsidy, (ii) the costs related to value added services and interconnection costs as a result of the increase in air time traffic and subscribers, (iii) technical expenses, and (iv) concessions rights. The increase in operating expenses during the second quarter 2006 mainly reflects an increase in administrative expenses owing to the creation of regional sales and customer care structures, offset by the reduction in advertising expenses. OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION Iusacell's operating income before depreciation and amortization for the second quarter of 2006 was Ps $300 million, a decrease of 3% as compared to Ps $308 million during the same period the year before. NET INCOME Iusacell registered a net loss of Ps $867 million for the second quarter of 2006, compared to a net loss of Ps $34 million during the same period in 2005. This loss is mainly a result of an increase in integral financing costs affected mainly by the exchange loss derived from the increase in exchange rates of the peso against the dollar. CAPEX During the second quarter of 2006, the Company made investments of approximately US $17 million, mainly for the acquisition of cellular equipment related to the expansion of coverage and capacity of Iusacell's 3-G network and EV-DO services (Evolution Data Only). DEBT The Company continues with its debt restructuring process as announced through various press releases to date. In this respect and in furtherance of the debt restructuring process, the Company has commenced various proceedings for the legal implementation of the agreements reached with majority of its creditors, which we expect to be accomplished shortly. ********************** 4 ABOUT IUSACELL Grupo Iusacell, S.A. de C.V.(BMV: CEL)(Iusacell) is a wireless cellular and PCS service provider in Mexico with a national footprint. Iusacell offers more and better voice communication and data services through state-of-the-art technology, such as its new 3G network, throughout all of the regions in which it operates. In addition to our core mobile telephony services, we also provide a wide range of other telecommunications services, including long distance, wireless local telephony and data transmission services. Additional information is available at http://www.iusacell.com LEGAL DISCLAIMER Grupo Iusacell, S.A. de C.V. quarterly reports and all other written materials may from time to time contain statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. A discussion of factors that may affect future results is contained in our filings with the Securities and Exchange Commission. Attached are the Consolidated Income Statements of each of Grupo Iusacell, S.A. de C.V. and Grupo Iusacell Celular, S.A. de C.V. for the three-month and six-month periods ended June 30, 2006, and the Consolidated Balance Sheet of Grupo Iusacell, S.A. de C.V. and Grupo Iusacell Celular, S.A. de C.V. at June 30, 2006. CONTACTS: --------- JOSE LUIS RIERA K. J. VICTOR FERRER V. Chief Financial Officer Finance Manager GRUPO IUSACELL S.A. DE C.V. GRUPO IUSACELL S.A. DE C.V. +52 (55) 5109-5927 +52 (55) 5109-5273 vferrer@iusacell.com.mx 5 GRUPO IUSACELL, S.A. DE C.V. AND SUBSIDIARIES MILLIONS OF MEXICAN PESOS OF JUNE 30, 2006 PURCHASING POWER (UNAUDITED FIGURES)

6 GRUPO IUSACELL, S.A. DE C.V. AND SUBSIDIARIES MILLIONS OF MEXICAN PESOS OF JUNE 30, 2006 PURCHASING POWER (UNAUDITED FIGURES)

7 GRUPO IUSACELL, S.A. DE C.V. AND SUBSIDIARIES MILLIONS OF MEXICAN PESOS OF JUNE 30, 2006 PURCHASING POWER (UNAUDITED FIGURES)

8 GRUPO IUSACELL CELULAR, S.A. DE C.V. AND SUBSIDIARIES FIGURES IN MILLION OF CONSTANT JUNE 30, 2006 PESOS

9 GRUPO IUSACELL CELULAR, S.A. DE C.V. AND SUBSIDIARIES FIGURES IN MILLION OF CONSTANT JUNE 30, 2006 PESOS

10 GRUPO IUSACELL CELULAR, S.A. DE C.V. AND SUBSIDIARIES FIGURES IN MILLION OF CONSTANT JUNE 30, 2006 PESOS

11 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. GRUPO IUSACELL, S.A. DE C.V. Date: July 28, 2006 /s/ Fernando Cabrera --------------------------- Name: Fernando Cabrera Title: Attorney in fact /s/ Jose Luis Riera --------------------------- Name: Jose Luis Riera Title: Attorney in fact 12

GRUPO IUSACELL SA DE CV 6-K